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    Being Technologically-Driven: Differentiating From The Competition

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    Adriana Martinez
    DoorDash expects to spread its food delivery product by targeting early adopters including people who don't have time to cook, companies ordering for employees, and foodies. It will focus on how its product characteristics meet user needs and the types of communication that help spread the word. DoorDash also aims to expand beyond food delivery over time and establish itself as a logistics platform for other industries like retail. It focuses on areas outside major cities that lack delivery options.

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    Being Technologically-Driven: Differentiating From The Competition

    Uploaded by

    Adriana Martinez
    71 views2 pages
    DoorDash expects to spread its food delivery product by targeting early adopters including people who don't have time to cook, companies ordering for employees, and foodies. It will focus on how its product characteristics meet user needs and the types of communication that help spread the word. DoorDash also aims to expand beyond food delivery over time and establish itself as a logistics platform for other industries like retail. It focuses on areas outside major cities that lack delivery options.

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    DoorDash expects to spread its food delivery product by targeting early adopters including people who don't have time to cook, companies ordering for employees, and foodies. It will focus on how its product characteristics meet user needs and the types of communication that help spread the word. DoorDash also aims to expand beyond food delivery over time and establish itself as a logistics platform for other industries like retail. It focuses on areas outside major cities that lack delivery options.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    71 views2 pages

    Being Technologically-Driven: Differentiating From The Competition

    Uploaded by

    Adriana Martinez
    DoorDash expects to spread its food delivery product by targeting early adopters including people who don't have time to cook, companies ordering for employees, and foodies. It will focus on how its product characteristics meet user needs and the types of communication that help spread the word. DoorDash also aims to expand beyond food delivery over time and establish itself as a logistics platform for other industries like retail. It focuses on areas outside major cities that lack delivery options.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    3. Explain how you expect to spread your new product.

    Pay special interest in the categories


    of adopters participating in the diffusion of the innovation, the relationship between the
    product characteristics and the rate of adoption, and the types of communication that aid the
    diffusion process.

    Being technologically-driven
    providing them with advanced data to help them understand consumer behavior. Retailers
    have access to in-depth insights – everything from which products are ordered most at
    particular times of the day, to what works best in particular locations. This helps providers
    improve the customer experience and influence business decisions.

    On the consumer-facing side, DoorDash’s platform is designed to be super easy to use.


    Users get access to some aggregate data, too – each restaurant has a ‘delight score’, a
    rating from one to ten that’s based on a combination of delivery quality, customer feedback,
    and overall popularity.

    Differentiating from the competition


    Food delivery is no new thing, and neither is third-party delivery. A copy-and-paste of Uber
    Eats would never have grown as quickly as DoorDash has – and its secret is in its
    differentiation.

    DoorDash identified a gap in the market. The inner cities were flooded with delivery services,
    and those more metropolitan areas were spoiled for choice. The opportunity lay in the areas
    outside of inner cities, where people had far fewer delivery options available to them, and
    restaurants found it harder to grow their customer base.

    Keeping their options open


    DoorDash does third-party food delivery, but it won’t always just do third-party food delivery.
    The brand is set up to establish itself and then expand its product offering. In the words of
    DoorDash founder, Tony Xu:

    Four, five years from now we want DoorDash to be a true logistics platform. When we
    founded the company, the goal wasn’t necessarily to start and end in restaurants. It was a
    starting point because 85% of restaurants don’t deliver, and because people eat 20 times a
    week. We thought it’d be a good bet, and it has been so far
    DoorDash’s customer segments
    DoorDash’s customer base is split into three segments:

    Users:
    People who don’t want to/are too busy to cook
    Companies ordering for their teams
    Foodies who don’t want to go out to restaurants
    Restaurants:
    Restaurants who wouldn’t usually be able to deliver
    Restaurants with no seating
    Restaurants who want wider reach
    Dashers:
    People who want a job with flexible timings

    DoorDash has two sides to its business: One is its consumer-facing marketplace, which
    connects consumers to participating brands through the DoorDash app. The other is Drive,
    which is DoorDash’s platform for working with retailers that launched in 2016. Like
    Postmates, which delivers a range of consumer goods beyond groceries, DoorDash has
    begun moving into consumer retail beginning with its tie-up with Walmart, and has ambitions
    to expand to new areas like alcohol delivery. DoorDash lets retailers embed its technology
    into its digital ordering platforms that connect directly to the DoorDash fleet, which
    Postmates also offers.

    DoorDash also offers retailers capabilities to understand customer behavior based on


    insights from Drive as well as its consumer-facing platform, including which products tend to
    be ordered at specific times of the day and neighborhood insights. It also offers brands
    operational insights, such as what delivery times are optimal. Brands can use the insights
    they get from Drive to figure out decisions like where to launch new locations, whether to
    raise delivery fees during peak service times, and prompt time-of-day based promotions to
    encourage orders.

    DoorDash's growth strategy: why simplicity succeeds


    How delivery company DoorDash is pitching retailers

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